General Growth board to vote on bids this weekend-source

* GGP board meeting more likely Sunday

* Board weighs quantitative, qualitative factors

By Paritosh Bansal

NEW YORK, May 1 (BestGrowthStock) – General Growth Properties Inc’s
(GGP.N: ) board is expected to vote this weekend on choosing
between two rival recapitalization offers, a source familiar
with the situation said on Saturday.

The board of General Growth is more likely to meet on
Sunday for a vote on the capital proposals led by Brookfield
Asset Management (BAMa.TO: ) and Simon Property Group Inc
(SPG.N: ), the source said.

General Growth, the second-largest U.S. mall owner, has
submitted a plan in court to exit bankruptcy backed by
Brookfield. But Simon, its larger rival, has come up with a
competing offer.

The Brookfield-led plan, which also includes investments
from Pershing Square Capital Management and Fairholme Capital
Management, commits $6.5 billion to help General Growth exit
Chapter 11, but the investors are also asking for warrants
worth several hundred million dollars as part of a deal.

Simon has offered to make that investment on similar terms
but without any warrants.

General Growth’s board is comparing quantitative factors as
well as more subjective factors in deciding which way to go,
the source said, adding that it was getting closer to
deciding.

Both Brookfield and Simon have made arguments on
subjective, qualitative factors, the source said.

The qualitative factors include issues such as what it
would mean for General Growth to have its rival holding a stake
in it.

Simon has tried to allay that concern by stressing that it
would be a passive shareholder and has taken measures that
include reducing its voting stake and proposing independent
directors for General Growth’s board should its bid succeed.

General Growth has scheduled a bankruptcy court hearing on
May 5 to get the proposal it chooses approved as a so-called
“stalking horse” bid, which sets the floor for any other offers
for the company.

A General Growth spokesman could not be reached immediately
on Saturday. The source is anonymous because these discussions
are not public.

Investment Research

(Reporting by Paritosh Bansal; Editing by Xavier Briand)
(For more M&A news and our DealZone blog, go to
http://www.reuters.com/deals)

General Growth board to vote on bids this weekend-source